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Back then, Fed officials were fending off critics who complained that they were ignoring signs of looming inflation.
Central banks may exacerbate the rises by raising short-term interest rates, either to encourage foreign capital to stay put or to head off looming inflation.
Last year, many conservatives seized on rising headline inflation — driven mainly by increasing gasoline prices — as evidence of a looming inflation tsunami.
The deal was a signal that despite Brazil's current economic woes and looming inflation, health care here remains an attractive industry for investors.
The Fed is always going to be excessively worried about looming inflation, because whenever the recovery starts to take off it observes rapid hiring and falling productivity, which suggests the economy is barrelling toward supply constraints.
Fed officials consider labor costs one of the most important indicators of looming inflation, and they have already made it clear in public pronouncements that they were more worried about inflation than about slower economic growth.
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As the U.S. economy flirts with recession, another toothy threat looms: inflation.
Debt defaults here are looming, and inflation is soaring, while recent moves to drastically devalue the currency and raise gas prices by over 6,000 percent for the first time in decades are harbingers of highly destabilizing unrest.
The rapid expansion reinforced expectations that the European Central Bank will raise the base rate to 4.0% when it meets on June 6th.In South Africa higher interest rates loomed after inflation rose to 7.0% in the 12 months to April and targeted inflation (excluding mortgage costs) reached 6.3%, above the central bank's upper limit.
Now the question looms: Is inflation next?
To a central banker, that signals a tighter labour market, with less downward pressure on wages, and more of a threat of looming inflation.I think it would be wrong for the Fed to revise its views too much based on these datapoints, and I think it would be wrong for the Fed to react too quickly to inflation, when and if it emerges.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com